Bitcoin can only work correctly with a complete consensus among all users. However, by regulating exchanges they can be measured against a common standard that they must adhere to, which can protect customers as well as raising the standards of the industry and the ease of access to the market. Mining What is Bitcoin mining? For example, the infamous Silk Road marketplace only accepted Bitcoin on its site in order to ensure anonymity for its customers.
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Bitcoins are not actually received by the software on your computer, they are appended to a public ledger that is shared between all the devices on the network. This means that anyone has access to the entire source code at any time. There is a wide variety of legislation in many different jurisdictions which could cause income, sales, payroll, capital gains, or some other form of tax liability to arise with Bitcoin. Some concerns have been raised that private transactions could be used for illegal purposes with Bitcoin. What if someone bought up all the existing bitcoins?